Browse by Topics

Useful Tools

AXIS Bank Recurring Deposit ( RD ) Rates

Updated on Jan 22, 2018 - 01:39:46 PM

Recurring Deposits can be a useful addition to your tax saving and investment strategy and a wonderful way to save money for future emergencies. Axis Bank Bank’s Recurring Deposit is a trusted RD scheme you can use for making regular monthly investments. Here, we give you all the details you need to know before starting an RD account with Axis Bank Bank.

Axis Bank RD Interest Rates for different Investment Periods

Investment period

RD rates for regular deposit

RD rates for Senior Citizens

6 months to 8 months 29 days

6.50%

7.00%

9 months to 11 months 29 days

6.75%

7.25%

1 year to 1 year 364 days

7.00%

7.50%

2 years to 10 years

6.75%

7.25%

Axis Bank Recurring Deposit Interest Rates

Axis Bank offers interest rates for RD accounts that go as high as up to 7.00%

Interest on RD with Axis Bank is compounded quarterly

For senior citizens, Axis Bank offers interest on RD up to 7.50%

Axis Bank Recurring Deposit: Special Features

Premature withdrawal of money from the RD account is allowed. However, Axis Bank charges a penalty of 1% on the interest applicable

The RD deposit tenure ranges from 6 months to 120 months. You can choose the time period that suits your needs

The minimum monthly amount deposited must be in multiples of Rs. 10

The gains from the RD will be subject to TDS deductions according to the existing income tax rules at the time of opening the RD account

Penalty on non-payment of the periodic deposit is Rs. 10 per Rs. 1,000 per month

Axis Bank Recurring Deposit: How much can you save?

It is true that recurring deposits can help you save money and earn interest on your surplus savings. But they are not the only way of wealth creation. If you are comfortable with regular monthly investments, you can also explore Mutual Funds SIP as an alternative way of wealth creation. Below we have detailed the benefits of Mutual Fund SIPs that make it an even better choice for saving money than RD.

Mutual Fund SIPs: Why You Should Choose This

Mutual Fund SIP payments start from as low as Rs. 500. You can choose monthly or quarterly payments as per your convenience

When you invest in Mutual Funds, you are essentially investing in debt or equity funds. As per the market trend for the last 10 years, Equity Linked Mutual Funds (ELSS) have consistently earned high dividends with an average return rate of 12-22%. RD interest rates are only around 6-8% maximum

SIP accounts offer much higher liquidity as compared to RD accounts.Unlike RD, when you withdraw money from SIP there is no penalty charged

The interest gains from RD accounts are subject to tax, while the gains one receives from Equity Linked Mutual Fund SIPs (ELSS) are totally exempt from tax

Axis Bank RD Eligibility Criteria

Investor must be an Indian resident or a HUF (Hindu Undivided Families)

If an NRI, investor can open an RD account through NRO and NRE accounts

If a minor, investor can open an RD account under parental guardianship who will be the supervisor of your finances

Axis Bank RD: Premature Withdrawal

Axis Bank Bank allows users to withdraw money from their RD account before maturity i.e. before the tenure finishes. However, partial withdrawal of the amount is not allowed.

Tax benefits on Axis Bank RD

All Recurring Deposits, including Recurring Deposit account in Axis Bank, are liable to be taxed under the Income Tax Act 1961. The money that is invested in the RD account becomes part of the investor’s taxable income for a given financial year and TDS (Tax Deducted at Source) at 10% is deducted on the interest earned (only if interest amount exceeds Rs. 10,000 for the financial year). You can save TDS on your RD returns by filling either Form 15G or Form 15H.

Conditions for submitting Form 15G:

You must be an individual or HUF

You must be a Resident Indian

You should be less than 60 years old

Tax calculated on your Total Income is nil

The total interest income for the year is less than the minimum exemption limit for that year, which is Rs 2,50,000 for the financial year 2016-17

Conditions for submitting Form 15H:

You are an individual

You must be a Resident Indian

You are 60 years old or will be 60 years old during the year for which you are submitting the form

Tax calculated on your Total Income is nil

Documents Required to Open Axis Bank RD Account

1. Proof of Identity

Passport

PAN card

Voter ID card

Driving license

Government ID card

Photo ration card

Senior citizen ID card

Address proof

Passport

Telephone bill

Electricity bill

Bank Statement with Cheque

Certificate/ ID card issued by Post office

Types of Recurring Deposit Offered by Axis Bank

Axis Bank Bank offers different types of Recurring Deposit schemes for the benefit of its users. The most common of this is the Regular RD scheme.

Regular RD: If you are looking to save for the future by investing regular monthly amounts, the RD scheme by Axis Bank can be a great help. The tenure for this account starts at a minimum of 6 months, which can be increased to a maximum of 10 years. The minimum monthly investment amount can be deposited in multiples of Rs. 10 per month.

RD Interest Rates in India

The RD interest rate in India can vary from bank to bank and depends on the kind of RD scheme chosen, the tenure of deposit, and the monthly deposit amount. Generally, the interest rates are higher when the RD tenure is above 15 months. Also, some banks may offer high RD interest rates for senior citizens and women.

Efiling Income Tax Returns(ITR) is made easy with ClearTax platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with ClearTax GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. ClearTax can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with ClearTax by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download ClearTax App to file returns from your mobile phone.